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The Little Book of Market Myths: How to Profit by Avoiding the Investing Mistakes Everyone Else Makes



The Little Book of Market Myths: How to Profit by Avoiding the Investing Mistakes Everyone Else Makes

Kenneth L. Fisher

ISBN: 978-1-118-44500-6 January 2013 224 Pages


Exposes the truth about common investing myths and misconceptions and shows you how the truth shall set you free—to reap greater long-term and short-term gains

Everybody knows that a strong dollar equals a strong economy, bonds are safer than stocks, gold is a safe investment and that high PEs signal high risk...right? While such "common-sense" rules of thumb may work for a time as investment strategies, as New York Times and Wall Street Journal bestselling author, Ken Fisher, vividly demonstrates in this wise, informative, wholly entertaining new book, they'll always let you down in the long run. Ken exposes some of the most common—and deadly—myths investors swear by, and he demonstrates why the rules-of-thumb approach to investing may be robbing you of the kinds returns you hope for.

  • Dubbed by Investment Advisor magazine one of the 30 most influential individuals of the last three decades, Fisher is Chairman, and CEO of a global money management firm with over $32 billion under management
  • Fisher's Forbes column, "Portfolio Strategy," has been an extremely popular fixture in Forbes for more than a quarter century thanks to his many high-profile calls
  • Brings together the best "bunks" by Wall Street's Master Debunker in a fun, easy-to-digest, bite-size format
  • More than just a list of myths, Fisher meticulously explains of why each commonly held belief or strategy is dead wrong and how damaging it can be to your financial health
  • Armed with this book, investors can immediately identify major errors they may be committing and adjust their strategies for greater investing success

Preface ix

Chapter One Bonds Are Safer Than Stocks 1

Chapter Two Asset Allocation Short-Cuts 17

Chapter Three Volatility and Only Volatility 27

Chapter Four More Volatile Than Ever 37

Chapter Five The Holy Grail—Capital Preservation and Growth 49

Chapter Six The GDP–Stock Mismatch Crash 55

Chapter Seven 10% Forever! 67

Chapter Eight High Dividends for Sure Income 75

Chapter Nine The Perma-Superiority of Small-Cap Value 83

Chapter Ten Wait Until You’re Sure 93

Chapter Eleven Stop-Losses Stop Losses 105

Chapter Twelve High Unemployment Kills Stocks 113

Chapter Thirteen Over-Indebted America 131

Chapter Fourteen Strong Dollar, Strong Stocks 153

Chapter Fifteen Turmoil Troubles Stocks 161

Chapter Sixteen News You Can Use 171

Chapter Seventeen Too Good to Be True 181

Notes 191

Acknowledgments 201

About the Authors 205